National Bank of Cambodia Riel. Stability. Development.

National Bank of Cambodia Riel. Stability. Development.

Technological Innovation: Implications for Central Banks

H.E NEAV CHANTHANA

Deputy Governor

16 December 2017

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The views expressed in this presentation are those of the author and do not necessarily represent the views of the NBC.

National Bank of Cambodia Riel. Stability. Development.

NBC’s Role in Payment System

Catalyst

Oversight

Operator

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National Bank of Cambodia Riel. Stability. Development.

Key Roles and Functions

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Policy & Framework Infrastructure Development Oversight

Laws Large value payment Designated Payment System

Regulations Retail payment PFMI Assessment

Supervision Cross-border remittance

Oversight Interbank money market

Catalyst Government payment

Cooperation National trade depository

National Bank of Cambodia Riel. Stability. Development.

Infrastructure Development

Retail Payment

•NCS Net Settlement

•Fast Payment

•Central Shared Switch

Large Value Payment

•Online Platform

•Real Time Gross Settlement

Cross Border Transfer

•SWIFT Network

•Bilateral Connection

•Informal Channel

Interbank and Money Market

•NCD

•FX

•LPCO

Government Payment

•Online Payment

•Financial Management Information System

National Trade Depository

•Securities Settlement System

•Central Securities Depository

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National Bank of Cambodia Riel. Stability. Development.

Implication for the National Bank of Cambodia

Balancing Innovation and

Stability

Pace of Payment System

Development

Consumer Protection and Cyber

Security Risk

Issuance of Digital

Currency

Financial Inclusion Agenda

Organizational Change

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National Bank of Cambodia Riel. Stability. Development.

Balancing Innovation and Stability

Engagement

•Understanding risk and opportunities

•Promoting the safe and responsible technology

Accommodation

•Ensuring authorization process

•Creating innovation space

•Initiating effective policy

Coordination

•Looking across border

•Encouraging information sharing and knowledge exchange

•Reducing regulatory arbitrage

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National Bank of Cambodia Riel. Stability. Development.

Pace of Payment System Development

•Faster speed of transaction

•Convenience

•Efficiency

•Multichannel accessibility

•Possibility to Leapfrog

Innovation

•Payment security

•Rebuild of Payment infrastructure

•Possible AML/CFT issues

Challenges

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National Bank of Cambodia Riel. Stability. Development.

Consumer Protection

Ele

me

nts

of

Co

nsu

me

r P

rote

ctio

n

Law and Regulation

Financial Literacy

Enforcement Mechanism

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National Bank of Cambodia Riel. Stability. Development.

Cyber Security Risk

Information Security

Data Integrity

Authentication

Mitigate Threat

Cyber Education

Balancing between Privacy and Security

Cyb

er

Se

curi

ty R

isk

Ch

allen

ge

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National Bank of Cambodia Riel. Stability. Development.

Issuance of Digital Currency

Advantage

•Promote Safety and Convenience

•Increase Competition

•Reduce Cost of Payment

•Save Time

•Improve Financial Stability

Impact

•Money Aggregate Measurement

•Money Supply Management

•Signorage

•Inflation

•Increase Dollarization

•Volatility of Money

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National Bank of Cambodia Riel. Stability. Development.

“Bakong” Project

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Store in dVault and dWallet

Digital Currency

Issued by NBC

USD

KHR

Other currencies

National Bank of Cambodia Riel. Stability. Development.

Financial Inclusion in Cambodia

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National Bank of Cambodia Riel. Stability. Development.

Financial Inclusion Agenda

Wide range of financial products and services

Quality of the products and services

The use of formal sector

Cooperation to expand delivery channel

Customer awareness and confident

Comprehensive data and measurement

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National Bank of Cambodia Riel. Stability. Development.

Organizational Change

Human

Capital

Process

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National Bank of Cambodia Riel. Stability. Development.

Many Thanks and Best Wishes!

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